Summary
Berkshire Hathaway Inc.'s first quarter 2019 report shows a significant turnaround in net earnings compared to the same period in the prior year. Net earnings attributable to shareholders surged to $21.7 billion from a net loss of $1.1 billion in Q1 2018. This dramatic increase was largely driven by a substantial gain of $16.1 billion from investment and derivative activities, primarily due to unrealized gains on equity securities, reflecting the impact of a new accounting standard implemented in 2018. Excluding these volatile investment gains/losses, operating earnings from insurance underwriting, railroad, utilities, energy, manufacturing, service, and retail businesses remained relatively stable or showed modest growth year-over-year. The company maintained a strong financial position, with shareholders' equity increasing to $372.6 billion. Liquidity remains robust, with $110.5 billion in cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses. Berkshire continued its share repurchase program, acquiring approximately $1.7 billion of its own stock in the quarter, demonstrating its commitment to returning value to shareholders when opportunities arise. The company's diversified operations across various sectors provide resilience, though some segments experienced mixed results and challenges like severe weather impacting BNSF operations.
Financial Highlights
29 data points| Revenue | $60.68B |
| Operating Expenses | $53.52B |
| Net Income | $21.66B |
Key Highlights
- 1Net earnings attributable to shareholders dramatically increased to $21.7 billion in Q1 2019 from a net loss of $1.1 billion in Q1 2018, largely due to a $16.1 billion gain from investment and derivative activities (primarily unrealized equity gains).
- 2Operating earnings from core businesses like insurance underwriting, railroad, utilities, energy, manufacturing, service, and retail showed stability or modest year-over-year growth, indicating underlying business strength.
- 3Shareholders' equity grew to $372.6 billion as of March 31, 2019, reflecting strong retained earnings and investment gains.
- 4The company maintained a very strong liquidity position with $110.5 billion in cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses.
- 5Berkshire Hathaway repurchased approximately $1.7 billion of its own Class A and Class B common stock during the first quarter of 2019 under its revised repurchase program.
- 6BNSF experienced operational challenges due to severe winter weather and flooding, impacting freight volumes and results, despite revenue growth driven by higher rates per car/unit.
- 7GEICO's underwriting results showed improvement with an increase in premiums earned and a slightly lower loss ratio, driven by premium growth and rate adjustments.